A Turning Point for Electrification: Since
2019, New-EV Demand Up 930%, Supply Soars 825%, Prices Up
56%
CHICAGO, July 26,
2024 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS)
(d/b/a "Cars Commerce Inc."), an audience-driven technology company
empowering the automotive industry, reveals the first half of 2024
has brought notable changes to the automotive industry in its
Industry Insights Report. This comprehensive report, crafted by
Cars Commerce's expert data analysts, delves into macro and micro
automotive market insights by analyzing supply, demand, pricing and
consumer behavior data from across the company's platform,
including Cars.com®, Dealer Inspire and AccuTrade.
"The car market continues to recover and evolve, with June
seeing ongoing price stabilization. When you take a step back for a
broader perspective, however, the market has seen sweeping changes
since the first half of 2024, particularly with the growing
influence of electric vehicles as consumer demand and inventory
continue to increase," said Rebecca
Lindland, senior director of industry data and insights at
Cars Commerce. "And compared to five years ago when the market was
last stable, today's market is almost unrecognizable. Consumers are
paying more than 30% higher prices for new and used cars with more
than a million fewer vehicles available on each side of the market
— but they're also making significantly more on trade-ins."
EV Market Transformation
The EV market has undergone a dramatic transformation, evolving
from a niche segment to a mainstream choice for many consumers.
Over the last five years, the demand for new EVs has surged by an
astonishing 930%. This growth is driven by several factors: a wider
range of choices, better access to charging, increased consumer
awareness about environmental impacts, supportive state and federal
policies, government rebates and tax incentives, and advances in
battery technology that offer increased range and alleviates
consumer anxiety. Despite a 56% price increase for new EVs since
2019, the first half of 2024 has brought some relief to shoppers.
Prices are down 4% compared to the first half of 2023, saving
consumers an average of $2,400 per
vehicle, and inventory has improved by 53% in the same time
period.
The new EV market is not alone in its transformation. Over the
last five years, the average price for used EVs has increased by
almost 50% from $25,096 to
$36,908 and supply has jumped by
almost 500%. In the first half of 2024 alone, demand for used EVs
has surged almost 40% compared to the first half of 2023. Inventory
has grown by 45% in the first six months of the year compared to
2023, adding 38,000 more vehicles for buyers and causing prices to
drop nearly 20%, saving consumers over $8,500.
New- and Used-Car Markets: Prices Drop and Inventory Climbs
Amid Supply Chain Recovery
The broader new-car market has also evolved. Consumers are now
spending over $11,000 more on a new
vehicle, with prices rising 30% from $37,790 to $49,106
over the last five years. Inventory is down 24% in the same time
period, resulting in 1.7 million fewer vehicles available for
shoppers. Market recovery continues, allowing manufacturers to
increase production and resulting in wider availability of new
cars. In the first half of 2024, new inventory is up 13% compared
to the first half of 2023, and new-car prices have decreased
slightly (down 1%), maintaining an average of around $49,000 for the past nine months.
The used market has followed a similar path. Over the last five
years, the average price of used vehicles has surged by 34%, from
$21,480 to $28,815, and the ongoing inventory shortage has
created a competitive market with 1.5 million fewer used vehicles
available. The first half of 2024 has offered some relief to
buyers, as prices have decreased by 5% compared to the first half
of 2023, saving consumers over $1,600. This decrease reflects a normalization
from the peak prices seen in 2023, which were driven by intense
demand and limited supply. Inventory for used vehicles is down 4%
in the first half of the year compared to first half of 2023, with
nearly 300,000 fewer vehicles available.
Trade-In Values Offer Leverage for Car Buyers
Trade-in values have increased by 48% since 2019, reflecting the
higher value of vehicles in a market with constrained supply and
high demand. Despite an 8% decrease in the first half of 2024 year
over year, trade-in values remain elevated, providing added
leverage for consumers negotiating the purchase of a new or used
car.
Key June Monthly Year-Over-Year Highlights
- New-car prices are down 2% YoY, maintaining an average of
$49,467.
- The average price of a used car is $28,912, a decrease of nearly 7% YoY.
- Interest in new EVs is up 20% year-over-year with prices down
slightly (2% YoY), yet prices remain 30% higher than non-EVs.
- Demand for used EVs is up 55% YoY, supported by a nearly 14%
price drop and an average age of almost 3 years as EV owners are
purchasing new and trading in their lightly used EVs.
To download the full report,
visit www.CarsCommerce.inc.
*Inventory, searches and list price on Cars.com. A
third-party cyber incident impacted dealer inventory data beginning
June 19, 2024.
ABOUT CARS COMMERCE
Cars Commerce is an audience-driven technology company
empowering the automotive industry. The Company simplifies
everything about car buying and selling with powerful products,
solutions and AI-driven technologies that span pretail, retail and
post-sale activities – enabling more efficient and profitable
retail operations. The Cars Commerce platform is organized around
four industry-leading brands: the flagship automotive marketplace
and dealer reputation site Cars.com®, award-winning
technology and digital retail technology and marketing services
from Dealer Inspire, essential trade-in and appraisal technology
from AccuTrade, and exclusive in-market media solutions from the
Cars Commerce Media Network. Learn more at
www.carscommerce.inc.
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SOURCE Cars Commerce